Actually, effective date is 2002 plan year (see below from Senate bill)(c) Faster vesting of employer matching contributions (sec. 633 of the bill and sec. 411 of the Code)...Explanation of ProvisionThe provision applies faster vesting schedules to employer matching contributions. Under the provision, employer matching contributions must vest at least as rapidly as under one of the following two alternative minimum vesting schedules. A plan satisfies the first schedule if a participant acquires a nonforfeitable right to 100 percent of employer matching contributions upon the completion of three years of service. A plan satisfies the second schedule if a participant has a nonforfeitable right to 20 percent of employer matching contributions for each year of service beginning with the participant's second year of service and ending with 100 percent after six years of service. Effective Date: The provision is effective for contributions for plan years beginning after December 31, 2001, with a delayed effective date for plans maintained pursuant to a collective bargaining agreement. The provision does not apply to any employee until the employee has an hour of service after the effective date. In applying the new vesting schedule, service before the effective date is taken into account.Note this only applies to employer matching contributions under a 401(k) only; does not make change to vesting of any employer discretionary contribution amounts.
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